This article was originally published in 2013. 10 years on, we have been looking at the current rate of fuel duty and whether van operators continue to feel the pinch.
In 2013, we wrote:
The increasing cost pressure of running a van, whether you are running one van as a trade or a van fleet, has been given some relief.
The Chancellor in his Budget has scrapped the 3p fuel duty rise which was due to take effect in September.
Small businesses running a fleet of 20 Ford Transit vans would have faced a rise of up to £4,000 in their annual fuel bills if the 3p rise had gone ahead.
The AA added that despite the scrapping of fuel duty, prices were almost 5p a litre higher than when the Chancellor froze fuel duty in March 2011.
A recent survey of van drivers of van operators by Nissan found that, despite the cost of fuel, 25% of van operators were taking no efforts to control those costs.
“Van operators must take proactive steps to ensure that drivers are given fuel efficient vehicles, are taught how to drive them efficiently, and plan their routes effectively,” commented Chris Chandler, Principal Consultant at Lex Autolease, about effective business van management.
“Fuel efficient driving techniques will not only reduce fuel costs but will also increase safety and lower maintenance and repair costs.”
As it stands now in 2023, Fuel Duty rates have been reduced since cost-of-living crisis began in 2021. Rates were frozen from March-22 to March-23, and at this time of writing (April-23), this has been extended for a further 12 months to help motorists continue using their vehicles. We recently explored the current situation for drivers in terms of fuelling their cars in our Driven to Debt article, with recent surveys highlighting some of the highest fuel costs in ppl since 2013, and 32% of the nation reporting that they would be unable to commute to work if prices keep rising. As such, this extended freeze on fuel duty is welcomed, although we must be aware that this freeze is costing the government around £5bn in lost revenue (and with all losses, we all know they will be paid for somehow in other ways).
In addition to the freeze on fuel duty, which is at present frozen at £0.53p, the 5ppl discount introduced in 2022 has also been extended for another year. This discount, designed to keep the costs of filling your tank down brings the fuel duty down to £0.48p.
All of these measures do give motorists some relief amid rising costs across all areas of living in the UK, as well as the extension of the 50% first year allowance on qualifying plant and machinery for fleet operators. This has been extended for 3 years, until March 2026.
Some stats to finish:
- Diesel is still the primary fuel in 96% of UK vans on the road.
- Commercial vans make up 58% of all vans on the roads.
- Diesel costs per litre have risen on average 53p in the past 12 months – 41%!
- Some delivery companies are already adding fuel surcharges on to their customers – the Royal Mail for example, or DHL.
- B2C services like Uber are also having to add more money on to their prices to combat the rise in fuel prices.
Source: Go.Compare
Whilst there is no easy answer for any of our rising costs, motorists, fleet operators and van drivers all have to be savvy with their spending – whilst it may not always be convenient to drive further to get a better price per litre, sometimes it’s worth it to make a significant saving.
